Interactive Agencies

With the rapid growth of the Internet and other forms of interactive media, a new type of specialized marketing communications organization has evolved—the interactive agency. Many marketers are using interactive agencies that specialize in the development and strategic use of various interactive marketing tools such as websites for the Internet, banner ads, CD-ROMs, and kiosks. They recognize that the development of successful interactive marketing programs requires expertise in technology as well as areas such as creative website design, database marketing, digital media, and customer relationship management. Many traditional advertising agencies have established interactive capabilities, ranging from a few specialists within the agency to an entire interactive division. Some of the largest interactive agencies such as EuroRSCG Interaction, Grey Digital Marketing, and Ogilvy Interactive are affiliates of major agencies, while others such as Agency.com, Modern Media, and R/GA are owned by major holding companies (see Figure 3-11). Many agencies work closely with their interactive affiliates in developing integrated marketing campaigns for their clients. For example, iDeutsch, the interactive arm of the Deutsch agency, has developed the websites and online campaigns for clients such as Snapple, Almay, Mitsubishi automobiles and the California Milk Processor Board; the parent agency handles the off-line campaign in traditional media for these companies (Exhibit 3-11).

While many agencies have or are developing interactive capabilities, a number of marketers are turning to more specialized interactive agencies to develop websites and

Figure 3-11 Top 10 U.S. interactive agencies

Rank Agency (Affiliation) Headquarters

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